Relative strength index


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Relative strength index

Used in technical analysis, it is a measure of the number of days a stock increases in value relative to the number of days it decreases in value. The rule of thumb is that values over 70 suggest overvaluation and hence selling where as values around 30 suggest undervaluation or buying. Of course, this indicator completely ignores all fundamental information about the firm's prospects and, hence, is problematic to use as a stand-alone indicator for an investment strategy.

Relative Strength Index

A measure of the performance of a stock relative to its industry or the performance of an industry relative to the market as a whole. A stock (or industry) outperforming its industry (or market) for a given period of time has a relative strength index value above 1; this is seen as a bullish sign for that stock (or industry). On the other hand, a stock (or industry) underperforming its industry (or market) for a given period of time has a relative strength index value under 1; this is seen as a bearish sign.
References in periodicals archive ?
Improved risk sentiment pushed the Relative Strength Index of U.
moving averages, Relative Strength Index or the Bollinger Bands).
Moreover, the relative strength index for the NZD/USD remains above 69, and I expected to see a corrective retracement over the following week as the pair remains overbought.
Further supporting this view is the relative strength index which was now in overbought levels, the brokerage added.
Weekly relative strength index indicator is currently looking bearish, while the daily one is also negative but resides in the oversold territory," Kamco had said in its technical analysis.
The rally in the Indian currency has pushed the dollar's relative strength index, a technical indicator, below the 30 level that signals a probable rebound in the greenback.
The company's 14-day relative strength index rose to 79 on Wednesday.
The relative strength index for silver stood above 77 at its highest since April, showing the market has become overbought.
TECHNICALS Chartists said the Euro STOXX 50, the euro zone's blue-chip index, was approaching "oversold territory", with the Relative Strength Index at 35.
INDICATOR OF THE DAY" - RELATIVE STRENGTH INDEX (RSI) The recent pullback in the pair has not gone unnoticed, with the market most recently closing back below the 200-Day SMA for the first time since May 2008.
The rebound in banking stocks, however, was seen as technical, with its 14-day relative strength index, a momentum indicator, hitting 29 on Tuesday.

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